Nvidia invests $5B in Intel as BOJ holds rates

Nvidia will inject $5 billion into Intel, boosting the struggling chipmaker’s prospects and drawing attention to European tech stocks. The Bank of Japan kept rates unchanged with two dissents, firming the yen slightly while the Nikkei eased after hitting a record high. Asian shares advanced with Wall Street’s recent highs, while the dollar stayed soft despite sliding over 10% this year.

Equities

The FTSE 100 closed 0.2% higher on Thursday at 8,145, lifted by strength in industrial and information services stocks after the Federal Reserve’s midweek rate cut. Rolls-Royce gained after steady demand for its aircraft engines supported sentiment, while RELX also rose on optimism around data services. Jupiter Fund Management climbed 12% after Peel Hunt upgraded the stock to “buy” from “add”.

Pets at Home slumped 15.5% after its chief executive stepped down and the retailer cut annual profit forecasts. Next slipped 3.5% as it warned that sales growth could slow despite reporting a 14% rise in first-half profits.

On Wall Street, all three major benchmarks reached record closes on Thursday. The S&P 500 advanced 0.48% to 6,631.96, the Nasdaq Composite climbed 0.94% to 22,470.73, and the Dow Jones added 0.27% to 46,142.42. Intel surged 22.8%, its largest daily gain since October 1987, after Nvidia announced a $5 billion stake in the chipmaker to support its turnaround efforts. Nvidia itself added 3.5%, recovering losses from Wednesday after reports that Chinese regulators had urged local tech groups to pause orders for its chips. Advanced Micro Devices eased 0.8% despite strength across the semiconductor sector, which rose 3.6%.

CrowdStrike jumped 12.8% after at least nine brokers raised their price targets for the cybersecurity group. Darden Restaurants slid 7.7% following weaker-than-expected quarterly results from the Olive Garden parent. The Russell 2000 rose to 2,466, its first record close since November, as smaller stocks benefited from hopes of looser US monetary policy later this year.

The Fed’s quarter-point cut on Wednesday and Chair Jerome Powell’s remarks on a softening labour market framed trading sentiment, while weekly jobless claims data pointed to easing employment pressures. Seven of the S&P’s 11 sectors advanced, led by technology, while consumer staples and discretionary stocks retreated.

Forex & Commodities

The dollar strengthened late on Thursday after the Federal Reserve trimmed rates by 25 basis points but signalled it would not rush to loosen policy further. It rebounded to 97.35 against a basket of peers, having earlier touched 96.22, its lowest since February 2022. Sterling, which had risen briefly after the Bank of England slowed the pace of gilt sales while holding Bank Rate steady, slipped to $1.355 against the dollar by the close. The euro eased to $1.1790 after climbing as high as $1.192 the previous day. The Norwegian crown weakened after the Norges Bank cut its policy rate to 4.0%, its second reduction in three months, and the yen edged lower to ¥147.9 ahead of Friday’s Bank of Japan decision.

Spot gold edged up to $3,660 per ounce early this morning, heading for a fifth consecutive weekly rise after Wednesday’s Fed cut briefly pushed prices to a record $3,707.40. Analysts said expectations of further US easing later this year kept sentiment firm despite a cooler tone in the Fed’s guidance. Silver climbed to $42.35, platinum was $1,388, while palladium recovered to $1,166 but remained set for a weekly fall.

Oil slipped in Asian trade on Friday as concerns over US fuel demand offset optimism from lower interest rates. Brent crude eased to $67.29 a barrel and West Texas Intermediate to $63.34, though both remained on track for a second weekly gain. A surprise build in US distillate inventories and softer labour data weighed, while comments from President Trump favouring low prices over tougher sanctions on Russia calmed supply worries.